Desperate for good news on the economic front, The Wall Street Journal’s lead story (Jan.19,2011) reports that last year, manufacturing created more jobs than it lost for the 1st time in a decade. As our semesters begin, this is an important topic to address in class (and in Ch.1). Indeed, this is good news as we stress how important manufacturing is for any country that expects to maintain a high standard of living for its citizens.
But before we get too carried away with projections of 300,000 new 
manufacturing jobs next year, let’s remember that we lost 6 million factory jobs in the past 13 years. This puts manufacturing jobs at about 12 million, or about 9% of all US non-farm jobs. We also don’t forget that manufacturing accounts for 11% of US economic output, down from 27% in 1950. After the steep recession slump, however, we need the growth. Manufacturing jobs pay about $22/hour, twice the average of service jobs.
The other good news is that companies are becoming more efficient, increasing productivity 7.1% from a year earlier while hours worked grew just 3%.
And yet more good news: Whirlpool just decided to spend $120 million to open a new appliance plant in Cleveland, instead of lower-cost Mexico. (The reasons include a better trained workforce, lower freight costs, and $30 million in incentives). And Caterpillar is building a $120 million plant in Texas to produce machines currently being shipped from its plant in Japan to N. American customers. Finally, The Journal states that Dow is building a massive new plant in Michigan to make batteries for hybrids and electric cars. Dow claims that every new job there will have a multiplier effect of 5 jobs at suppliers.
Discussion questions:
1. Why are companies starting to create new manufacturing jobs?
2. What will affect long-term growth in such jobs in the US?
3. What are the risks facing these jobs?
